Official Report: Minutes of Evidence
Committee for Agriculture, Environment and Rural Affairs, meeting on Thursday, 5 June 2025
Members present for all or part of the proceedings:
Mr Robbie Butler (Chairperson)
Mr Declan McAleer (Deputy Chairperson)
Mr John Blair
Mr Tom Buchanan
Ms Aoife Finnegan
Mr William Irwin
Mr Patsy McGlone
Miss Michelle McIlveen
Miss Áine Murphy
Witnesses:
Mr David Dowd, Department of Agriculture, Environment and Rural Affairs
Dr Eric Long, Department of Agriculture, Environment and Rural Affairs
Mr Paul McHenry, Department of Agriculture, Environment and Rural Affairs
Horticulture Pilot Scheme and Horticulture Pilot Scheme Regulations (Northern Ireland) 2025: Department of Agriculture, Environment and Rural Affairs
The Chairperson (Mr Butler): I welcome the following officials from the Department: Paul McHenry, acting director of the College of Agriculture, Food and Rural Enterprise (CAFRE); Dr Eric Long, head of CAFRE's educational service; and David Dowd, acting head of CAFRE's horticulture branch. Members have your paper in their packs, gentlemen, but feel free to go ahead and brief the Committee, please.
Mr Paul McHenry (Department of Agriculture, Environment and Rural Affairs): Thank you, Mr Chairman, for the opportunity to provide the Committee with a briefing on DAERA's plans to introduce the Horticulture Pilot Scheme Regulations (Northern Ireland) 2025. The Committee has received the draft regulations, along with the SL1 that sets out the purpose of the legislation, and we previously provided the Committee with an oral briefing on the proposals for the horticulture pilot scheme. With your permission, Mr Chairman, I would like to give you and members a short overview of the contents of the draft regulations, including details of the scheme, eligibility requirements and the application process.
The horticulture pilot scheme sits within the programme of change being progressed through the DAERA sustainable agriculture programme. DAERA proposes to make the statutory rule (SR) under powers conferred to it under sections 5(2B) and 6(1)(f) of the Agriculture Act (Northern Ireland) 1949. The overarching aim of the horticulture pilot scheme is to determine the feasibility of a full horticulture programme to increase the output of the Northern Ireland production horticulture sector. It also aims to contribute to the delivery of many of DAERA's strategic outcomes by supporting growers to achieve improved environmental sustainability, enhanced productivity, stronger resilience and an effective, functioning supply chain.
The Horticulture Pilot Scheme Regulations 2025 are intended to give DAERA the legal powers to introduce the scheme, and they provide for payments to be made by the Department to eligible farm businesses. The horticulture pilot scheme has a total budget of £7·7 million and will be funded from allocations from the EU replacement funding for agriculture, agrienvironment, fisheries and rural development for the sustainable agriculture programme.
The current value of the production horticulture industry in Northern Ireland is approximately £100 million a year. I will set that in context: it represents 3% of the gross output of Northern Ireland agriculture, which is equivalent to the output of our sheep industry. It is important to emphasise to the Committee that, although it is a pilot scheme, the £7·7 million cost over four years will represent a significant investment relative to the current size of the industry and demonstrates the commitment to developing horticulture in Northern Ireland. The horticulture industry can positively impact on the environment, health and other issues that are high on the Government's policy agenda, including climate change, food security and public health. Horticulture also has the potential to have a greater economic impact by exploiting market opportunities such as import substitution, and it strongly aligns with the aims of the Northern Ireland food strategy framework. The scheme also presents opportunities for agriculture businesses that wish to fully or partially diversify into horticulture production.
There are constraints on the growth of the production horticulture industry in Northern Ireland. The overriding issue for producers is market access and low UK producer prices. There are other issues that negatively affect the sustainability, productivity and resilience of the industry. First, there is limited cooperation among growers. Previous attempts to rectify that have not been successful due to competition in the marketplace. That has led to fragmentation and a lack of supply chain integration. The four-year duration of the horticulture pilot scheme is recognition that building trust among growers will take time in an industry that does not have a history of cooperation. The scheme will also address that issue with the provision of facilitator support. Secondly, horticulture has never had a dedicated investment support scheme. Relatively low investment levels have led to a lack of innovation and poor productivity levels, leaving Northern Ireland growers at a distinct disadvantage in comparison with growers in other countries. There is also a lack of baseline data and market intelligence, which limits growers' ability to identify market opportunities to invest in. The horticulture pilot scheme will de-risk investment in innovation for growers. Thirdly, the industry is very diverse, so providing specialist, centre-based education for each subsector is not feasible. There are few new entrants, labour shortages and an ageing profile of growers. That, combined with limited research and development being undertaken, means that there is a risk of a diminishing knowledge and skills base in the future. The horticulture pilot scheme will provide growers with the opportunity to avail themselves of upskilling and further technical professional development opportunities that are bespoke to their production sector.
The horticulture pilot scheme recognises the unique challenges faced by the sector and seeks to address them by supporting the industry's ability to achieve its full potential. It has been developed through an engagement process that included the agricultural policy stakeholder group (APSG), CAFRE's advisory group and meetings with industry representative groups. In DAERA, there is ongoing engagement across a number of business areas. The scheme has also been informed by the lessons learned from past schemes and seeks to build on their successes. The schemes have adopted a bottom-up approach that recognises the entrepreneurial spirit of the horticulture sector. All the schemes have a competitive entry process that will select growers with the best plans to grow their businesses and the industry.
We will undertake ongoing evaluation of the pilot scheme and apply the lessons that we have learned from it to the development of a full scheme. We plan to begin development of the full scheme before the end of the pilot. Ultimately, it is our aim to have a sustainable, data-driven, collaborative horticulture industry that exploits market opportunities. That will not only provide economic benefits for Northern Ireland but improve our long-term food security, public health and ability to meet the challenges of climate change.
I will now pass to David Dowd to take you through the provisions of the SR.
Mr David Dowd (Department of Agriculture, Environment and Rural Affairs): Thank you, Paul. I will take the Committee through the provisions of the SR that members have in front of them. The regulations establish the horticulture pilot scheme. The scheme provides for payments to be made by the Department to eligible farm businesses that meet its requirements.
I will skip "Citation and commencement", "Interpretation" and "Scheme grants" and begin with regulation 4. It specifies the duration of the sustainable sector growth group pilot scheme grant, beginning on the commencement date of the regulations and ending on 31 March 2030. It specifies the eligibility criteria for farm businesses. Eligible farm businesses must:
"(a) hold a DAERA category 1 or 2 farm business ID number or be able to provide to the Department such an ID number with the written consent of the farm business holding that ID number.
(b) be a member of not more than one new group of businesses making one application to become a sustainable sector growth group;
(c) operate or be employed by a commercial horticulture business; and
(d) be at least 18 years of age."
"the Department shall pay to an applicant which holds a hosting event in a scheme year or the approved agent of that applicant a hosting payment of £786 for each hosting event."
Regulation 5 specifies that the duration of the innovation driver and support pilot scheme grant:
"shall start on the date beginning with the commencement of these Regulations and end on 31 March 2030."
It specifies the eligibility criteria for farm businesses. They must have a category 1 or 2 business ID number and operate or be employed by a production horticulture business. It specifies:
"the Department may pay a grant of 40% of a sum between £10,000 and £625,000 in respect of approved permitted expenditure incurred by the applicant".
Regulation 6 specifies that the growers' training and support pilot scheme grant:
"shall start on the date beginning with the commencement of these Regulations and end on 31 March 2030".
It specifies the eligibility criteria for farm businesses. They must have a category 1 or 2 business ID number or be able to provide the Department with such an ID number with the written consent of the farm business that holds that ID number. They must:
"have a Level 2 Practical Horticulture Skills Award qualification or a qualification of an equivalent or higher standard as listed in Schedule 2; and ... be at least 18 years of age."
The regulation sets out that:
"a sum not exceeding £2,000 over the duration of the growers training and support pilot scheme is payable to–
(a) an eligible person; or
(b) that person in respect of not more than one of their employees.
in either case for approved travelling expenses for attendance at an approved course of instruction, demonstration or show within or outside Northern Ireland".
Regulations 7, 8, 9 and 10 provide the general powers for the withholding and recovery of overpayments; powers of authorised persons; assistance to authorised persons; and offences and penalties. Schedule 1 to the regulations provides detail on production horticulture products for the purpose of the scheme. Schedule 2 sets out the equivalent or higher educational qualifications for the level 2 practical horticulture skills award.
I will now hand over to Eric Long to provide more in-depth information on each of the three outcomes.
Dr Eric Long (Department of Agriculture, Environment and Rural Affairs): Thank you, David. Mr Chairman, I will now provide an outline of the horticulture pilot scheme.
The horticulture pilot scheme has been planned to provide support to the following sectors of Northern Ireland's production horticulture industry: soft root, which is predominantly strawberries; top fruit, which is predominantly apples; edible crops, which are predominantly vegetables and salad crops; mushrooms; protected crops, which are grown under glass or polytunnels; ornamental crops, which comprise hardy nursery stock, trees and bedding plants; and cut flowers and foliage.
The horticulture pilot scheme comprises three sub-schemes: first, the sustainable sector growth group pilot scheme; secondly, the innovation driver and support pilot scheme; and, thirdly, the growers' training and support pilot scheme. All three sub-schemes will be delivered by an external contractor with the skills and expertise required to meet the diverse needs of the production horticulture industry in Northern Ireland. As was highlighted earlier, the total cost of the scheme will be £7·7 million, and it will run for four years. The eligibility criteria have been designed to accommodate horticulture businesses that do not meet the criteria for category 1 farm business ID numbers by accepting category 2 farm business ID numbers.
Pilot scheme 1 is for the sustainable sector growth groups. The aim of this scheme is to support the formation of six self-selected groups of growers in order to demonstrate the impact of a collective effort by participants to cooperate, build, scale and reduce barriers along the route to market with their business performance. Growers will have agreed aims and objectives for the development of their businesses and will appoint a group lead to submit the group's application. A competitive application process will aim to select the six groups of growers, consisting of between four and 12 members per group, against criteria based on their business plan as described in their application. Each group will be supported to work collaboratively through the provision of access to a facilitator, a business specialist, a supply chain specialist and agronomist support.
The impacts on Northern Ireland production horticulture businesses that are collaborating as part of the sustainable sector growth groups pilot scheme will be evaluated by increases in their gross profit margin; the number of groups formed that continue to operate as groups after the end of the scheme; and increases in external sales.
Pilot scheme 2 — the innovation driver and support pilot scheme — aims to support Northern Ireland production horticulture businesses by providing financial support to adopt crops, technologies or systems that are new to Northern Ireland, with the overall aim of encouraging innovation and improving productivity and sustainability. There will be no prescriptive list of eligible items, and growers will present their plan as part of the competitive application process. That will help to address some of the issues that the Northern Ireland production horticulture industry has experienced in recent years such as labour shortages. Growers can apply for grant support up to a maximum of £250,000 or 40% of the total eligible cost of their proposed project. Therefore, the maximum purchase value that is eligible for funding is £625,000. The minimum purchase value that is eligible for funding is £10,000.
The impact of participants investing in innovation will be evaluated by increases in their gross profit margin; the number of successful adoptions of new crops, technologies or systems; and increases in external sales. Participants will be supported to successfully adopt new crops, technologies or systems through the provision of access to a facilitator, a business specialist, a supply-chain specialist and agronomist support. The scheme will commence one year after the start of pilots 1 and 3. Participants in pilots 1 and 3 will also be able to apply for the innovation driver and support pilot scheme.
Pilot scheme 3 — the growers' training and support pilot scheme — aims to provide growers with the opportunity to avail themselves of upskilling and further technical and professional development opportunities that are bespoke to their production horticulture sector. The scheme will be open to the business owner or a nominated member of their staff. An additional eligibility criterion for the scheme is that the applicant must have a minimum of a level 2 practical horticulture skills award qualification or a qualification of an equivalent or higher standard. That eligibility criteria requirement is to ensure that participants with less experience can communicate effectively with agronomists and gain the best possible benefit from the pilot scheme. CAFRE will provide a level 2 practical horticulture skills award qualification in advance of the closing date for applications. That will provide potential applicants who do not have that qualification with the opportunity to obtain it and to avail themselves of the growers' training and support pilot scheme.
Competitive selection for the scheme will be based on the business and personal development plan that is outlined in the application and judged against set criteria. Participants will attend workshops and receive a £2,000 bursary to undertake trade show visits, study tours and farm visits. Participants will also be supported through the provision of access to a facilitator, a business specialist, a supply-chain specialist and agronomist support. The impact of the growers' training and support pilot scheme on participants will be evaluated by the number of participants that complete the programme and the number of new businesses or new enterprises within an existing business that are operational two years after the end of the scheme.
I will now pass back to Paul. Thank you.
Mr McHenry: I will now provide an overview of the application process for the scheme. The plan is to open for expressions of interest by the end of June 2025, with programme delivery commencing later this year. The horticulture pilot scheme is part of DAERA's commitment to Digital First service delivery. Applications to the scheme will be made through an online process that can be accessed through DAERA online services. The online application system will be designed to be customer-friendly. Guidance sheets and a link to the business rules will be available on the DAERA website. During the application window, help will be available through the use of a dedicated email address and a DAERA helpline number. Digital assistance will be provided initially over the telephone, and a dedicated team can screen-share and assist customers with the online application. All communications related to the scheme will be issued electronically. Applicants will be reminded to regularly check their email inbox for important updates and notifications.
That finishes the presentation on the horticulture pilot scheme. I am happy to take questions. Thank you very much.
The Chairperson (Mr Butler): No problem. Thank you for your submission — I know that members will have taken time to read it — and for the detailed presentation. I really appreciate it.
Paul, it caught my attention from your brief that we have a high-quality horticulture sector, but it is probably untapped in some ways in that it seems that one of its challenges is limited grower cooperation. We have come across that, perhaps, in another iteration in and around the producer organisation (PO) scheme in the Agriculture Bill. It seems that only mushroom growers are in that. With regard to assessing the relevance of the scheme to the horticulture sector at the moment, how confident is the Department that there will be significant uptake to realise the potential to grow the sector? Has there been any calculation of what that growth might look like?
Mr McHenry: In developing the pilot scheme, there was broad engagement not just with the agricultural policy stakeholder group and our college advisory group but with key industry players. That helped to inform the development of the programme. I will ask David, who has more background information on horticulture, to comment on its potential to deliver.
Mr Dowd: We are still at a very early stage of developing the horticulture industry here. We see that there is a lot of potential for the industry to increase in size. We do not have an exact figure yet, largely based on the fact that, as we say in the paper, little market data on the horticulture industry is available. Part of the scheme will be about building up that base of market intelligence and baseline data about the industry. That will be a major learning outcome from the programme. Part of the evaluation will be in seeing how that information base has been built.
The Chairperson (Mr Butler): With regard to longevity, there is Farming for the Generations and a challenge in all areas of farming and agriculture to recruit and energise young farmers. We have met the Young Farmers' Clubs of Ulster a number of times. Young farmers feel a lot of external and internal pressures. Has the programme been drafted with young people in mind and to link the Farming for the Generations programme to the horticulture piece?
Mr McHenry: Again, the key thing is that the programme has been developed on the basis of our experience of delivering previous knowledge transfer schemes and the likes of business development groups (BDGs). The duration of the programme is based on our evidence from business development groups, which demonstrated that it took three to four years of people working together in peer-to-peer groups to develop cohesion and the benefit of working together and to get the group to be confident sharing information with one another. That links to the duration of the programme. Engagement with young people really comes through the agricultural policy stakeholder group and feedback from key industry representatives from the horticulture sector.
Mr Dowd: The programme is not just for the owner of the business; the business owner can nominate somebody who could be a member of their family or an employee. We recognise that we need to get new young people into the industry, and we are keen to do that. That is why we have put it into the programme that you can nominate somebody.
The Chairperson (Mr Butler): I am conscious that it is slightly different from the farming and agricultural sectors in that there is potential for enterprise here as well, so it can cater not only for businesses but for enterprise and new business opportunities. It is in a slightly different space. I would certainly like to see that utilised a little.
There is an interesting piece here, gentlemen, about new technologies and more robotic and automated processes to address labour challenges. I have a general question: are those technologies embryonic, or are they on the market at the moment? I imagine that they are cost-prohibitive at this stage; possibly not. Can you give us any more detail on that?
Mr McHenry: I will start and then hand over to Eric, who has more experience in that area. The key thing about innovation is that we want to de-risk it for farmers and individuals. That is where the capital support is, so that we can come in and evaluate that new technology before the growers invest in it. I will hand over to Eric, who might have more detail on some of the innovations.
Dr Long: There is a broad range of automation and robotic opportunities, and development is ongoing fast. There are a lot of automation opportunities available for growing management systems for horticulture crops — things like watering and fertilisation. You are absolutely right that there is a cost issue with those technologies. There is also a certain amount of risk, particularly with new technologies that have not previously been adopted and tested locally. The whole purpose of the innovation driver and support pilot is to de-risk that aspect of adopting new approaches and new technologies. There is also ongoing development of automatic and robotic systems for the harvesting of horticulture crops, which is of particular interest to the mushroom sector. That is still very much in development. There is some adoption in some countries, but it is not mainstream yet. As I say, the whole purpose is to encourage growers and give them the necessary support to test new approaches that will ultimately improve the competitiveness and sustainability of their businesses locally.
The Chairperson (Mr Butler): I do not know if I have picked this up right; in fact, I have not because I am not terribly sure. As part of the three stages, is there a chance that there will be financial support to allow people to avail themselves of technology that is available and tested?
Dr Long: Yes. The innovation driver and support pilot will facilitate that. It is very much focused on technologies, innovations and systems that are new to Northern Ireland. That is all about seeking to demonstrate new approaches and encourage other growers to avail themselves of them.
"To be eligible for pilot scheme 3 applicants require a Level 2 Practical Horticulture Skills Certificate or an equivalent nationally recognised horticulture qualification."
As I said, we had a discussion with Young Farmers' Clubs of Ulster at the Balmoral show, part of which was about increasing requirements for farming or, in this case, horticulture qualifications. Can you explain the need for the qualification to enable people to avail themselves of that part of the pilot scheme?
Mr Dowd: We feel that that is important, because you will have people who are coming into horticulture for the first time or are relatively new to it. They will have agronomist support, and, in order for them to communicate effectively with the agronomist, they will need a basic level of horticultural knowledge. The level 2 programme that they will have to attend will be very much based on things like pest and disease management. It will be applicable to what they do. We also want the level 2 programme to be designed very much around the needs of the grower and to consider at what times of the year they are busy. We will design it to make it as easy as possible for them to attend the programme. That could be done through online evening sessions and condensing the programme into a format that works for them.
The Chairperson (Mr Butler): Is that in order to achieve a qualification to get on to the pilot scheme, or is there an opportunity for either prior accredited learning or — the word "qualification" jumps out at me? Whilst I know the value of that, I also know the value of doing a university degree in later life, where I was able to apply my professional experience in the Fire Service without having A levels and things like that.
Mr Dowd: The content of that programme will be useful to them. CAFRE staff will provide that programme for the growers. It is an opportunity for growers to get professional development in Northern Ireland. It is likely that they will be interested in that anyway to develop their knowledge and skills.
The Chairperson (Mr Butler): Is there financial support for that course for the qualification, or will they pay for it out of their own pocket?
Mr McHenry: The programme will be delivered by CAFRE, so we will deliver it within our existing resources. There are limited costs to the individuals. Given that we will use a hybrid delivery model, it will be possible to complete a lot of it online at home. We still want to be able to bring them into the likes of CAFRE, because there will be practical elements of the programme that we will want to deliver and that growers will also want.
Mr McAleer: Thank you very much for your presentation. I welcome the scheme. I have a couple of questions.
Applicants to the sustainable sector growth group pilot have to have either a category 1 or category 2 farm business or written consent from somebody who has a farm business. Bearing in mind that we have a three-hectare rule for minimum farm size, that will make it more difficult for somebody who has two hectares, which is a fair bit of ground, to avail themselves of the scheme. They will not be deemed as having a farm business because they do not have enough land, and they will not be eligible. Also, as a consequence of changes being made this year, the historical reference year of 2021 is being used, so people who did not have livestock then have been ruled out from getting the new basic payment this year. There are a couple of thousand people who had farm businesses but now do not. People who do not have a farm business but want to start the scheme are placed at a disadvantage. I do not understand the rationale for that.
Mr McHenry: The category 1 business ID is for those who have the minimum eligible land area. I assumed that the category 2 business ID is for anybody and that, for it, there is no limit to the amount of land that you specifically own. That is why we included it in the programme. Again, it is based on our previous experience of delivering business development groups where we limited it specifically to category 1 businesses. There are a lot of horticulture businesses out there that did not have a category 1 ID, because they had never drawn down any support previously. That is why we included category 2 at this time.
Mr McAleer: Why is it even set out that you have to have a category 1 or category 2 business or consent? If somebody has sufficient ground and they want to take part, why can they not apply in their own right for a business ID?
Mr McHenry: We are talking about consent. If you work in a farm business as an employee, that allows you to avail yourself of the programme. Again, it is based on our previous experience of the BDGs. Initially, it was linked to the owner, and some people involved in the business could not apply. We opened it up so that farm workers and others in the business could also attend. That is really what the consent relates to.
Mr McAleer: Thank you. The briefing note that we got states that similar schemes across the water and in the rest of Ireland provide funding for modernisation, but this scheme does not. Why is that provided in other parts of these islands but not in this pilot scheme? Is there a danger that that puts the sector here at a competitive disadvantage compared with the sectors across the water and in the South?
Mr Dowd: In the sustainable agriculture programme, there are other schemes that horticultural businesses can apply to. In that scheme, they will be able to apply for funding for capital purchases for modernisation. Our scheme is more focused on the innovation side of it because it is a pilot scheme.
Mr McAleer: We have heard about the importance of funding for modernisation, particularly for the mushroom sector, given its challenges with access to labour. Thank you.
Mr McGlone: Thank you for your presentation. Will you talk me through how the scheme has been developed? Was there any consultation or dipping the toe in the water with the industry? I am not saying that CAFRE does not know what to do, but you do not want to put something out there that is not necessarily suited to the needs of the people whom you are trying to support.
Mr McHenry: We consulted widely on the programme, particularly with people in the horticulture sector. We also consulted the APSG and our college advisory group, on which there are representatives from the horticulture sector. That consultation helped to inform need — the areas that we need to focus on. We also scoped out what programmes have been delivered in other regions and how well they had worked. We brought all that together to come up with the initial plan. That is where we identified the big challenges with cooperation and price, the issue with price being that, because individuals work on their own, they do not have the same power when it comes to negotiating deals. That is why we wanted to focus very much on —
Mr McGlone: That brings me on to the next element of your thinking, which is that there will be six self-selected groups. Will you talk me through that? Do they have to constitute themselves? How is that done? You could have a group that is a loose alliance: a number of individuals that is under a title for the purposes of availing themselves of grant aid. Will you talk me through how that works?
I will take you through the practicalities of issues that you mentioned there. You have talked about facilitators, business specialists, access to markets and addressing labour shortages: I am intrigued as to how that final one will be addressed in the scheme, because, if it is addressed, you will have come up with a magic bullet for nearly every other industry in the North.
Mr Dowd: We have based how we see a sustainable sector growth group coming together on what we have seen in previous schemes. When a group of growers with a common aim comes together to apply for a scheme, that is much more successful than if we try to bring together a group that does not have a common aim. That is the rationale behind that part. We would see it working so that growers hear about the programme, learn about the programme, see an opportunity in the marketplace and then come together to put in an application that includes their plan for how they will work together and what they will achieve, and the best applications will be put forward.
On your question about labour shortages, the growers in that sustainable sector growth group will also be able to apply for the innovation driver and support scheme, which can help with automation. By coming together, a group of growers should be able to be more competitive in attracting labour, because they will be able to cooperate and identify markets.
Mr McGlone: You have taken me on to where I was going to go anyway:
"This pilot scheme will provide financial support to horticulture businesses to grow crops that are new to NI" —
I would be interested to hear what crops will potentially be new to Northern Ireland —
"or to implement technologies and systems that"
could be deemed as being new to Northern Ireland. I would be interested to hear what the technologies or systems might be that are not already in use elsewhere. I would think that they would have to be something pretty niche. How niche would they be? What do you have in mind?
Mr Dowd: One thing to say is that we are not being prescriptive about what those crops are, because we recognise the entrepreneurial spirit of the industry. For example, a new crop in Northern Ireland could be the production of cherries under cover.
Cherries under cover? Right. OK.
Mr Dowd: That is an example. As part of the work that we do at CAFRE, we have the Loughry land use project, in which we look at innovative crops that we could produce in Northern Ireland to contribute to a circular economy. Learnings will come from that as well. Robotics is an example of an innovative technology that we are not currently using.
Mr McGlone: I am trying to narrow it down to the technologies that may not be in use elsewhere. If you make the eligibility criteria so narrow that you exclude technologies — robotics or machinery; whatever they might be — that are not already in use in agriculture or other sectors in Northern Ireland, you may find that that leaves very little. Maybe you will tell me different.
Mr Dowd: The equipment and systems used in horticulture tend to be quite niche. One of the problems growers face is that a lot of the innovation in horticulture takes place in Europe, GB or the South. There should be a lot of opportunities for growers to come up with ideas that are new to Northern Ireland because the production system in horticulture is specialised and niche. I do not see too many issues with adopting new technology, crops or systems.
Mr McGlone: Will that contribute to addressing the labour shortage?
Mr Dowd: Yes. Take robotics as an example. When we talk about robotics, you probably have in your mind something like a robotic hand picking strawberries. That sort of technology is still under development, but there are simpler robotic systems out there that may not be in use in Northern Ireland. For example, there are robots that can lift potted plants and move them around a nursery. Those would help with the labour shortage.
Mr McGlone: Finally, will any part of the funding, whether it is through pilot scheme 2 or even pilot scheme 1, allow for people to engage in research or commission others to do so about the specialist equipment that is available in other jurisdictions but not here? Will the funding allow for that research and related visits?
Mr McHenry: That links in with the specialist support that will be available as part of the programme. That will bring in individuals who have knowledge of the new technologies that are out there and available to be brought into Northern Ireland. The world leaders in this area are the Dutch: they lead on all of the new technology. There are huge opportunities for the horticulture sector here because £6 billion of product is imported into the UK every year, and we can tap into that market. A lot of that product comes from Europe, and CAFRE is developing links with the researchers and the organisations in Europe that lead in the area.
Mr Blair: Thank you for your presentation and the information that you have given us this morning. Today is World Environment Day, which is a day that, I hope, the Committee will be able to mark more formally in the future. As it is World Environment Day, I will go with an environmental theme.
The report mentions sustainability, and we have referred today to better environmental outcomes. Can we hear a bit more about what those better environmental outcomes might be? I am thinking that they might focus on composts, fertilisers and pesticides, but I am keen to hear more, if possible.
Dr Long: Production in horticulture enterprises has a much lower carbon footprint than production in agriculture enterprises because there are no livestock, which means that there are no greenhouse gases or slurry outputs. Also, for many years, the horticulture sector has been proactive in adopting more sustainable production approaches and systems. The move from peat-based growing media to peat-free growing media is an example of that and has been driven by the customers — the multiple retailers.
You mentioned the use of pesticides for crop management. Growers are increasingly using biological controls, especially in protected growing structures such as glasshouses and polytunnels. Using species such as the predatory wasp to control greenfly forgoes the need for any pesticide usage. That is all about building green credentials, and it gives growers a marketing edge. Similarly, it leads to improved nutrient utilisation. Hence, there is a great opportunity for development of the production horticulture sector in Northern Ireland to assist the whole industry to move towards being carbon zero. That is a fantastic opportunity.
.
Mr Blair: Thank you for that. There is an emphasis in the report on business support and specialist advice, which is perfectly understandable. I am intrigued by the mention — Patsy asked about this — of growing new crops and the very brief discussion on growing cherries under covers. Growing new crops, whatever they may be, might also mean the potential to access new markets. Through the schemes, will there be linkages set up with other departmental schemes, whether they are DAERA schemes, schemes in other Departments, such as the Department for the Economy, and economic development programmes in local councils? Have those linkages already been established? Where market opportunities are identified, whether they are domestic or abroad, will there be scope here to link participants with other schemes if it is appropriate to do so?
Mr McHenry: Where relevant, we will do that. We have a proven track record of working with the likes of Invest NI and its innovation vouchers scheme. Where there is the potential to add value to a product through such linkages, we will very much encourage them. That links to the work that we do at Loughry, where we look at growing crops that are new to Northern Ireland, including protein crops for human consumption, and process them through the technology centre there. We will be able to tap into the work that we do at Loughry to help growers who are looking at new crops and areas for development.
Mr Blair: Will there be opportunities to at least advise people on where to go if they need additional help or support, especially with technology?
Mr Blair: Responsibility for that would not sit with DAERA, but there may be opportunities for support elsewhere.
Dr Long: Absolutely. That is one of the reasons for the supply chain specialist. An overarching limiting factor for production horticulture industry in Northern Ireland is market access. Growers have to access the market themselves unlike beef and sheep producers, who have red-meat processors, or dairy farmers, who have dairy processors. It is all down to individual businesses securing a market. The whole principle of the sustainable sector growth group is to facilitate a more collegiate approach to securing new markets and growing existing markets. We have been working closely with our colleagues who are involved in the development of the food strategy framework and with supply chain programmes that will be coming in the new few years, to ensure that all those are as joined up as possible to optimise the support opportunities for production horticulture growers in Northern Ireland.
Mr Irwin: You are welcome. Support for the horticulture sector is welcome. It is widely recognised that there is scope for improved growth in the sector. My first question is about training and support. You have to have a level 2 certificate in horticulture to qualify: what is the cut-off date for applying to the programme?
Mr McHenry: What we aim to do and what we will do is deliver that programme while the application window is open. It is not yet open because we do not have approval yet. We will ensure that the level 2 programme is delivered before the application window closes so that nobody is disadvantaged.
Mr Irwin: When does the application window close?
Mr McHenry: We do not have a date for that.
Mr Irwin: You do not have a date for closing yet.
Mr McHenry: No, because we do not know when we will be allowed to open the programme.
Mr Irwin: I thought that it was going to be open in June.
Mr McHenry: Sorry, our ambition is to open in June. We will not close the application process until people have had the opportunity to gain the level 2 qualification.
Mr Irwin: That would be only fair. There is an opportunity for young farmers with small amounts of land to get involved. Given that the maximum grant is £250,000, is there not a danger that a small number of growers will gobble up that £7 million and leave little for the small first-time guys?
Mr McHenry: Yes. We will have to wait until we see the appetite for the programme.
Mr Irwin: You are a bit late doing that once you have set the rules. You cannot change horses halfway through, can you? If you have set targets and amounts, you cannot change them
Mr McHenry: No. It is not just about the money; it is also about the type of innovation. We have to look at the complete picture. It is not just about allowing in the people who will avail of the maximum level of grant. If there is a new crop or a new innovation, we want to ensure that those people get the opportunity to avail of it.
Mr Irwin: I welcome that, but the larger growers are usually more organised and better at working the process. They will probably jump through the hoops more quickly than the first-time guys. I have some concerns that a small number of growers will gobble up the £7 million and leave little for the small growers and new entrants.
Mr McHenry: The other key thing to say is that it is a pilot. The experiences from this will be used to help develop the larger scheme. If we find that your concern is realised, we will have to build safeguards into the bigger programme when we come to develop it.
Miss McIlveen: Thank you for your presentation this morning. It is good to see this moving forward and giving support to growers.
I am curious about whether there is only one entry point in the pilot scheme. Will there only be entry in year one, or will there be other opportunities throughout the pilot for others to get involved?
Mr McHenry: Initially, an application window will open, and we will promote it heavily to get people on to the programme. The level of uptake will inform us on whether we need to open subsequent tranches. At this stage, we do not know, even though we have engaged with the industry and have indications of the likely numbers. If we feel that there is a need to open again, we will aim to do so. We may have to seek ministerial direction, if we need to reopen the scheme, but we will address that when we get to that stage. We just have to wait to see the uptake.
Miss McIlveen: OK. We have had previous discussions on resilience and the challenges in the horticulture industry because of its weather dependency. I appreciate that there are opportunities to use covers and so on, but we are dependent on weather in Northern Ireland. That also creates challenges from an economic perspective. Will there be modules on building resilience? What broader discussions are you having with the Department on crisis support?
Mr McHenry: On the weather piece, we recognise that we will not be able to grow some crops in Northern Ireland because of our climate. We can grow some crops under covers to mitigate that. We do not have a massive sector, and there are some crops that suit our climate, particularly the likes of cut flowers. David will maybe provide a bit more detail on that.
With regard to crisis support, we will have to look at that as the programme is delivered. There is an opportunity. We have the potential to grow some crops and grow them well, and the fact that we are not that intensive at the moment links to disease resistance and everything else.
As I said, while we might not be growing tomatoes or pineapples, there are some crops that particularly suit our climate.
Miss McIlveen: I asked because we want to encourage the sector. You are asking it to invest heavily in machinery and various other methods, so it will need to see that there will be support as it moves out of the programme. Are you having those general conversations?
Mr McHenry: We are conscious that it is a pilot programme. We do not want to wait until the end of that programme to develop a bigger one; we want the two to run hand in hand. We are at the early stages of scoping out what the larger scheme will look like. Part of that process involves engaging across the wider Department. The delivery of the programme will help to inform some of the other interactions that we will need to build into the larger programme, including future support for people who have completed the programme. That is all being considered.
Miss McIlveen: I am very positive about what you hope to do. It is really about building on that and encouraging more people to get involved in the industry.
Ms Murphy: I have just a small point, because everything else has been covered. How will the Department evaluate the effectiveness of any outcomes from the pilot scheme? Is there any benchmarking in place?
Mr McHenry: I will start and then hand over to David, who can provide some more detail. The evaluation of the programmes will be very much based on the framework that we have used to evaluate similar programmes. The challenge with the horticulture sector at the moment is that we do not have a lot of baseline data. However, there are metrics that we will include in the evaluation process, such as the gross margin differential between the times at which you start and finish the programme, the level of output and how it has increased, and the professional development of individuals. Those are all metrics that we will look at. The evaluation will be carried out independently of CAFRE and the Department.
Mr Dowd: We see the evaluation process starting before the end of the programme. We want to learn lessons as quickly as possible. If the evaluation is positive, we would like to roll out a full programme as soon as possible.
Ms Murphy: Thank you, David. As you said, it is important to learn any lessons that need to be learned and implement them as soon as possible in the larger scheme.
The Chairperson (Mr Butler): Thank you very much for your presentation, gentlemen.
Members, are we agreed that the Department proceed to make the SR? We will then consider it and the SR report in due course.
Members indicated assent.